Hamilton Health Sciences Executive Compensation

Hamilton Health Sciences believes in its accountability to the community and the importance of being open and transparent. Posting compensation agreements is part of a movement toward providing more information to the public.

Compensation agreements are based on the complex and highly skilled needs of this health care system, the experience of the person in the job, comparable postings and the demands of the position. HHS is a large and complex health care system. It is the second largest health care system in Ontario, a leading research hospital in the country and the world, a nationally recognized employer, and a provider of specialized healthcare services for this region's 2.3 million population. Strong leadership is an essential component of providing the best patient care.

In the summer of 2011 an independant panel reviewed hospital CEO compensation guidelines and policies in Ontario. The panel found that CEO compensation in large hospitals reasonably aligned with executive compensation in other large public sector organizations. The panel's conculsions and recommendations can be viewed on the Ontario Hospital Association's website at www.oha.com

Hamilton Health Sciences believes that its Mission and Vision can only be achieved with a strong commitment to organizational values.Our four values of Respect, Caring, Innovation and Accountability must be embedded in all elements of organizational structure, culture and performance.As evidence of our commitment to the value of Accountability, a designated portion of eligible executive's compensation is held back from their base salary and deemed to be at-risk.Eligible executives can earn all, a portion or none of their variable compensation based on their level of performance in achieving mutually agreed goals to designated levels of performance.

While Hamilton Health Sciences has been a leader in accountability-based executive compensation, having introduced at-risk pay in 2004, long before the statutory implementation of the Excellent Care for All Act, the implementation of the Act introduced a new dimension of quality measurement.HHS was able to make simple amendments to the structure, composition and factor weighting of the CEO, EVP, and VP Variable Compensation Policy in order to leverage this expanded quality dimension.While the Act requires only the CEO and his/her direct reports to comply with the variable compensation elements, HHS voluntarily implemented a significantly expanded scope in that all of its executive team members eligible for variable remuneration had the new quality dimensions added to their annual performance goals.

There are five performance dimensions influencing variable compensation at HHS:

For President & CEO:

•i.Quality Improvement Plan

•ii.Consolidated Financial Performance

•iii.Fund 1 Financial Performance

•iv.Annual Corporate Objectives

•v.Personal Portfolio Objectives

For EVP and VP roles:

•i.Quality Improvement Plan

•ii.Corporate Financial Performance

•iii.Personal Portfolio Financial Performance

•iv.Annual Corporate Objectives

•v.Personal Portfolio Objectives

The CEO is eligible to earn his/her full remuneration based on his/her performance and results in the five dimensions described above. If he/she does not meet the target level of performance, his/her variable compensation, capped at 20% of his/her annual base salary or a portion thereof, is withheld. Executive Vice Presidents and Vice Presidents are treated in the same fashion however their at-risk-pay is capped at 15% of their annual base salary as outlined in the chart below.

Any payment of variable compensation is subject to the achieved level of performance in each predetermined factor on the following conditions:

Quality Improvement Plan: Each year, the Quality Committee of the Board will approve the Annual Quality Improvement Plan (QIP) and the weighted distribution against stated goals.

Corporate Financial Performance: will be assessed using only Audited Financial Statements.

Personal Portfolio FinancialPerformance: will be assessed using the Internal Financial Statements used for Board Reporting

Annual Corporate Objectives: will be assessed using the Annual Measures of Success as reported to the Performance Monitoring Committee of the Board.

Personal Portfolio Objectives: will be assessed at the end of the Fiscal year against the predetermined measure of success.

Compensation Alignment to Corporate Performance Goals

Quality Improvement Plan (QIP) Goals

Corporate Financial Performance

Personal Portfolio Financial Performance

Corporate Objectives

Personal Portfolio Objectives

All eligible executives are assessed by the QIP goals approved by the Quality Committee of the Board.

Eligible EVPs and VPs are assessed on the Corporate Financial Performance as shown in Audited Financial Statements for the fiscal year (April - March) results.

Disclaimer: Hamilton Health Sciences (HHS) offers Google Translate to better facilitate access for our community. However, HHS makes no claims regarding the accuracy of translations. Any and all health information should be verified by a health care professional.